‘Logistics cost at 8% of GDP, more burden on small cos’

NEW DELHI: A brand new research has estimated India’s logistics cost at 8% of GDP, with smaller corporations having the next burden.In 2023-24, for entities with turnover of as much as Rs 5 crore, the cost added as much as 16% of their output whereas it was pegged at 7.6% within the case of firms with turnover of Rs 250 crore or more. Logistics prices have been estimated at 9.1% of non-services output in India.“The estimates derived for the previous five years show that the pace of growth in the logistics cost is gradually slowing down compared with the pace of growth in non-services output,” stated the research by the division for promotion of trade and inner commerce performed by NCAER. Although it follows a unique methodology, an earlier estimate for 2016 had pegged India’s logistics cost at 13% of GDP, in contrast with round 8% within the US and South Korea.The survey estimated logistics prices as a proportion of complete output throughout commodity teams, primarily based on the sort of items manufactured. This share is critical within the transport gear sector at 21.4% of complete output, adopted by textiles and attire, agricultural merchandise, and prescribed drugs. It estimated the per tonne per km to be the bottom within the case of coastal ships at Rs 1.80.